- February 2, 2022
- Posted by: Stratford Team
- Category: Economy
The budget for FY 2022-23 has been presented in unique circumstances. Read along with the Economic Survey, it offers a convincing case of its economic management. Legacy issues have been resolved and the stage set to make this India’s decade of growth. In an earlier speech, PM Narendra Modi referred to the 2020s as “techade”. It may also be the “growthade”.
Consider the structural legacy issues inherited from the UPA and how they have been resolved.
First, the chronic NPA problem. Solved. Gross and net NPA ratios are steadily declining. Second, low bank capitalisation was adversely affecting credit, thereby affecting investment. Solved. The capital-to-risk weighted ratio is now over 16.5 per cent from below 13 per cent in 2013-14. Third, the indirect taxation mess was hampering capital efficiency. Solved. GST has now stabilised, with over Rs 1.4 lakh crore collections in January 2022. Fourth, sluggish private sector investment. Solved. There…
